Decree 95: Preferences for Goods and Intra-Bloc Contractors in International Bidding

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Decree 95: Incentives for Goods and Contractors within the Union in International Bidding (Illustrative Photo)

Decree 95/2020/ND-CP stipulates incentives for goods and contractors within the union in international bidding for procurement under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The procurement authority shall consider and decide on the application of incentives to contractors within the union and goods originating from Member Countries for packages not applying domestic preferences as regulated in Article 15 and Article 16 of this Decree. In the case of applying incentives, it should be executed as follows:

Subjects Eligible for Incentives:

- For goods procurement packages, contractors are eligible for incentives when participating in international bidding to supply goods with production costs in the Member Countries accounting for 50% or more;- For consultancy service packages, non-consultancy services, construction services, and mixed packages, subjects eligible for incentives when participating in international bidding include: contractors within the union bidding independently or in joint venture with other union contractors; joint venture contractors with a union contractor member undertaking 50% or more of the package value.

Principles of Incentives:

- In cases where a contractor is subject to more than one type of incentive, only the highest incentive as specified in the bidding documents or request for proposals will apply;- For mixed packages, the calculation of incentives is based on all proposals of the contractor in consultancy, goods supply, and construction services. Contractors are entitled to incentives when the total proposed costs for the Member Countries (consultancy costs, goods, construction services) account for 50% or more of the package work value;- After calculating incentives, if the bids or proposals are equally ranked, preference is given to the contractor with a higher intra-union cost proposal or employing more intra-union labor (calculated based on wage value).

For details, see Decree 95/2020/ND-CP, effective August 24, 2020.

Ty Na

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